Participating in an event organised to mark the start of the golden jubilee year of the Institute of Company Secretaries of India, Prime Minister Narendra Modi called demonetisation move a great success and hit out at critics who spoke of an economic slowdown.
Our correspondent Vikas Dhoot reports:
Here are updates:
On FDI
Prime Minister Modi lists out the extent of foreign direct investment in the three years since his government took over.
"Liberalisation began in 1992. But see what's happened 2014-2017:
- 75% of FDI into construction came in those 3 years.
- 56% of all FDI into mining.
- 53% of total FDI into computer software & hardware.
- 49% of FDI into renewable energy"
Rising FDI inflows are proof that foreign investors trust the Indian economy, have faith in government's policies & most of all, our intent
On the positive impact of demonetisation and GST
"Since June, commercial vehicle sales up 23% and passenger vehicles up 12%, two-wheeler sales up over 14%. What would you say to that?" the Prime Minister asks.
He goes on to say, "Domestic air traffic up 14% in last two months, Air freight volumes up 16%, telephone subscribers up by over 14%. What would you say?
"These indicators show an uptick in urban demand & in rural sector. This happens when people are confident," he says.
On GST
"Three months after GST, we have got feedback on all nitty-gritties. And I have told the GST Council must review all problems now," the PM says.
"I want to assure traders across the country - Hum Lakeer ke Fakeer nahi hain . We don't claim we know everything. This government is with you and will do all it takes to make GST simpler," Mr. Modi says.
'I am not an economist'
I am neither an economist nor have I ever claimed to be an economist, the Prime Minister says.
"India was part of Fragile 5 economies. Even someone like me who isn't an economist, wonders how this happened with an economist in charge."
On economic slowdown
"Some people enjoy spreading pessimism, they sleep well at night after that. For those people, a dip in growth for one quarter becomes doom. Is it the first time growth fell to 5.7%?" Mr. Modi asks.
"There were eight occasions under the previous government when the growth rate fell to 5.7% or lower."
There have been quarters when India's growth rate was 0.2% or 1%. That was even more dangerous as it came with higher inflation & deficits, he says.
Prime Minister hits out at those who doubted official data. "When CSO showed 7.4% growth, the same people questioned it and said it doesn't feel like that in 'ground reality'. Over the last 2 quarters, when growth fell to 6.1% & 5.7%, these people started loving the data."
On demonetisation
Prime Minister Modi continues to speak extensively on the demonetisation move: "After demonetisation cash to GDP ratio has become 9%, down from 12% before November 8, 2016"
November 8 will be known in history as the first day of the war against corruption, the Prime Minister says. "It was this government that had the courage to take the demonetisation decision."
